Request for Proposal for the Supply of LNG. Issued by: National Electric Power Company of Jordan
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1 Request for Proposal for the Supply of LNG Issued by: National Electric Power Company of Jordan 07 June Navigant Consulting (Europe) Ltd. Page I
2 Acronyms bcf/d FSRU GWh IPP JGTP JKM LNG LNGC MMBtu mmscf/d MSA MW NBP NEPCO RfP Billion Cubic Feet Per Day Floating Storage and Regasification Unit Gigawatt Hour Independent Power Producer Jordan Gas Transmission Pipeline Japan/Korea Marker Liquefied Natural Gas Liquefied Natural Gas Carrier Million British Thermal Units Million Standard Cubic Feet Per Day Master Sale and Purchase Agreement Megawatt National Balancing Point (United Kingdom) National Electric Power Company Request for Proposal 2015 Navigant Consulting (Europe) Ltd. Page II
3 Disclaimer This Request for Proposal (RfP) has been prepared by Navigant Consulting (Europe) Ltd (Navigant) for the National Electric Power Company of Jordan, to invite proposals for the supply of LNG to be delivered to NEPCO s import facility that will shortly be commissioned at Aqaba, Jordan. Although the information contained herein has been obtained from sources believed to be reliable, NEPCO and Navigant expressly disclaim any and all liability for incomplete or inaccurate information, or representations expressed or implied, contained in, or omitted from, the RfP or any other written or oral or electronic media communication transmitted or made available to any recipients of this RfP. NEPCO AND NAVIGANT MAKE NO EXPRESS OR IMPLIED WARRANTIES WITH RESPECT TO THE COMPLETENESS OF ANY FINANCIAL OR OTHER DATA CONTAINED HEREIN. NEPCO and Navigant also expressly disclaim all liability, including, without limitation, liability for misrepresentation, negligence or otherwise arising from any recipient's reliance upon the accuracy or completeness of the information contained in this RfP. Each recipient of this RfP must rely upon its own investigations and evaluations to establish its own conclusions as to the merits of the opportunity. This RfP is provided for information only and is not intended to be, and must not be, taken as the basis for any investment decision. In making an investment decision, prospective Bidders must rely on their own examination of the opportunity including the merits and risks involved. This RfP must be treated in the strictest confidence and may not be used for any other purpose or be reproduced, disclosed or distributed by any party receiving a copy to any other party without the express prior written consent of NEPCO. Prospective Bidders are not to construe the contents of the RfP as tax or legal advice. No professional, financial or legal adviser or any Government authority identified herein or any other independent third party has independently verified or advised on the accuracy or completeness of this RfP, the information presented herein, or the applicable laws of any jurisdiction. Neither do any of the above assume any responsibility for the contents of the RfP. Prior to making a bid for the supply of LNG, any prospective Bidder should consult with its own legal, business and tax advisors to determine the appropriateness and consequences of bidding for the supply of LNG. The delivery of this RfP at any time does not imply that the information contained herein is correct at any time subsequent to its date. NEPCO reserves the right to supplement or amend the information contained herein at any time. Neither NEPCO nor its advisors have any obligation to update or otherwise revise any information in this RfP including, without limitation, any projections, including any revisions to reflect changes in economic conditions or other circumstances arising after the date hereof or to reflect the occurrence of unanticipated events, even if the underlying assumptions do not come to fruition Navigant Consulting (Europe) Ltd. Page III
4 Table of Contents Section A: Instructions to Bidders Overview of Tender Process Introduction Prerequisite for Bidding Bid Summary Bid Timetable Bid Instructions Bid Requirements... 9 Section B: Forms Bid Letter Confirmation Notice Form of Performance Guarantee Navigant Consulting (Europe) Ltd. Page IV
5 Section A: Instructions to Bidders 2015 Navigant Consulting (Europe) Ltd. Page 1
6 1. Overview of Tender Process 1.1 Introduction National Electric Power Company of Jordan (NEPCO) hereby invites bids for the supply of Liquefied Natural Gas (LNG) to be delivered to NEPCO s import facility in Aqaba, Jordan (a Bid). This RfP has been sent to all companies who have expressed an interest in supplying LNG to the Terminal (each a Bidder). 1.2 Prerequisite for Bidding On 2 April 2015, NEPCO issued a draft Master Sale and Purchase Agreement (MSA) for the supply of LNG. Since that date, NEPCO has agreed a number of MSAs and is continuing to negotiate with other parties to agree additional MSAs. NEPCO will work with Bidders to execute an MSA prior to Bid submission. An MSA must have been signed by a Bidder and received by NEPCO for a Bid to be considered. Bids must comply with the Form of Confirmation Notice set out in Annex A of the Bidder s MSA. 1.3 Bid Summary This RfP is being issued for the purpose of selecting a suitable LNG supplier to enter into an Agreement, as defined in the MSA, to provide Jordan with LNG as detailed below: Contract Requirements Total Contract Volume One cargo of LNG Delivery Timing 14 August 2015 through 17 August 2015 Delivery Point Al-Sheikh Sabah LNG Terminal, Aqaba, Jordan (the Terminal) LNG is to be provided on a DES (Delivered Ex-Ship) basis Delivered LNG Volume Delivered LNG Energy Other Terms and Conditions No greater than 151,500 m 3 (i.e. equivalent to 160,000m 3 LNG carrier) TBTU As detailed in the MSA executed between the Bidder and NEPCO 2015 Navigant Consulting (Europe) Ltd. Page 2
7 More detailed requirements are set out as follows: a. LNG specifications as provided in the Form of Confirmation Notice set out in Annex A of the MSA (the Specifications); b. LNG Ship specifications as provided in the MSA; and c. Buyer's Facilities specifications as provided in the MSA. 1.4 Bid Timetable RfP release date 07 June 2015 Deadline for NEPCO to receive MSA signed by Bidder 11 June 2015 Bid Submission Deadline 13:00 (Jordan time), 15 June 2015 Confirmation Notice executed by NEPCO No later than 18:00 (Jordan time) on 18 June Bid Instructions Bidders are required to submit binding Bids. Bids should comply with the following requirements: a. Compliant Bids The documents comprising the bid shall consist of the following: i. Bid Letter in the form set out in Section B1; and ii. Confirmation Notice in the form set out in Annex A of the MSA signed by the Bidder. As noted above, NEPCO must have received a signed MSA from the Bidder no later than 11 June for its Bid to be considered. Bids received from Bidders who have not provided a signed MSA to NEPCO will be rejected. b. Alternative Bids 2015 Navigant Consulting (Europe) Ltd. Page 3
8 Bidders may provide alternative Bids for the supply of LNG. For example, alternative Bids may include a cargo Delivery Window lying partially outside the relevant date range stated in 1.3 above. Alternative bids are not required to be in compliance with the Bid requirements. NEPCO will consider alternative Bids at its sole discretion. c. Bidder Questions Bidders may submit questions at any time up to five (5) days prior to the Bid Submission Deadline. Questions should be submitted by to: aazzam@nepco.com.jo ; with copies to azaghal@nepco.com.jo ; m_kilani@nepco.com.jo; and richard.bass@navigant.com Copies of any questions and replies from NEPCO will be circulated to all Bidders, though the identity of the Bidder asking the question will be kept confidential. d. Amendment of RfP At any time up to five (5) days prior to the Bid Submission Deadline, NEPCO may amend the RfP by issuing an addendum. Any addendum issued shall be part of the RfP and shall be issued in writing to all Bidders. e. Bid Submission All Bids must be received prior to 13:00 hours local time in Amman, Jordan on 15 June 2015 (the Bid Submission Deadline). Any Bid received after the specified date and time may be rejected, no matter what the reason for the delay. It is the responsibility of Bidders to comply with the Bid Submission Deadline. f. Presentation of Bids 2015 Navigant Consulting (Europe) Ltd. Page 4
9 Bids must be submitted by . Bids submitted by facsimile, telex, telegram, courier, mail, or personal delivery may not be accepted. Bids should be submitted by to: The subject of the should be: Proposal for the Supply of Liquefied Natural Gas. Bids are to be provided as signed PDF documents. g. Bid Validity Bids shall remain valid for a period of seventy-seven (77) hours after the Bid Submission Deadline (Bid Validity Period). A Bid valid for a shorter period may be rejected by NEPCO as non-responsive. h. Clarification of Bids To assist in the qualification, evaluation and comparison of the Bids, and ranking of the Bidders, NEPCO may, at its discretion, ask any Bidder for a clarification of its Bid, and provide a reasonable time for the preparation and submission of a response from that Bidder. Any clarification submitted by a Bidder that is not in response to a request by NEPCO shall not be considered. No change, including any voluntary increase or decrease, in the prices of the Bid shall be sought, offered, or permitted, except to confirm the correction of arithmetic errors discovered by NEPCO in the evaluation of the Bids. If a Bidder does not provide the requested clarifications of its Bid by the date and time set in NEPCO s request for clarification, its Bid may be rejected. i. Evaluation of Bids NEPCO will evaluate the Bids received and rank Bidders based on: (i) (ii) (iii) Price including indexation mechanism (if any); Delivery Window; and Form and value of the requested credit support. NEPCO will select the Bids that provide the required LNG volumes and energy content at the lowest overall cost. The cost assessment will include price and other commercially important contract terms as set out in the MSA (including the Confirmation Notice) Navigant Consulting (Europe) Ltd. Page 5
10 NEPCO expects to provide credit support on a per cargo basis, and prefers to provide a standby letter of credit from a Jordanian bank. The form of credit support will be taken into account in the choice of the selected Bidder. NEPCO reserves the right to accept or reject any Bid, and to annul the Bid process and reject all Bids at any time prior to execution of the Confirmation Notice, without thereby incurring any liability to Bidders. j. Confidentiality Information relating to the evaluation of Bids shall not be disclosed to Bidders or any other persons not officially concerned with the Bid process, and the Bid ranking will not be disclosed to Bidders. Bids will not be publically opened. k. Notification of Bid Results Prior to the expiration of Bid Validity Period, NEPCO shall: i. notify the selected Bidder in writing that its Bid has been accepted, sign the Confirmation Notice by the deadline set out in 1.4 above, and issue this to the selected Bidder; and ii. notify each unsuccessful Bidder that its Bid has not been selected. l. Performance Guarantee No later than five (5) days before the start of the cargo Delivery Window, the selected Bidder shall provide NEPCO with a US Dollar denominated performance guarantee for an amount of ten percent (10%) of the cargo value, based on the Contract Quantity multiplied by the Price Proposal, and issued by a bank in Jordan (the Performance Guarantee) as security for NEPCO for the performance obligations required by the MSA. Where the Bidder proposes a formula in its Price Proposal, the value of the Performance Guarantee shall represent the Bidder's estimate of what ten percent (10%) of the LNG cargo value would be, based on the LNG price at the time of issuance of the Performance Guarantee. The form of Performance Guarantee is attached at Section B3. m. NEPCO discretion NEPCO reserves the right to reject any or all Bids without assigning any reasons and its decisions shall be final and binding. NEPCO will be under no obligation at any time to select any Bid Navigant Consulting (Europe) Ltd. Page 6
11 n. Cost of Bidding The Bidder shall bear all costs associated with the preparation and submission of its Bid, and NEPCO shall not be responsible or liable for any of those costs, regardless of the conduct or outcome of the Bid process. o. Language of Proposal Bids and all related correspondence and documents shall be written in the English language. p. Currencies to be used in the RfP The currency to be used in the Bid will be United States Dollars (USD). Bids not using USD may be rejected by NEPCO. q. Fraud and Corrupt Practices NEPCO requires that Bidders, suppliers, contractors, consultants and concessionaries (including their respective officers, employees and agents), adhere to the highest ethical standards, and report to NEPCO all suspected acts of fraud or corruption of which they have knowledge or become aware during the selection process. The definitions of actions set forth below involve the most common types of fraud and corruption but are not exhaustive. For this reason NEPCO shall also take action in the event of any similar deed or complaint involving alleged acts of fraud and corruption even when these are not specified in the following list. In pursuit of this policy, NEPCO: i. defines, for the purpose of this Article the terms set forth below as follows: (aa) corrupt practice means the offering, giving, receiving, or soliciting, directly or indirectly, of anything of value to influence the action of another bidder or a NEPCO official, advisor or representative in the selection process; (bb) fraudulent practice means a misrepresentation or omission of facts in order to influence the selection process and includes collusive practice among bidders (prior to or after the Bid Submission Deadline) designed to establish indicative prices at artificial, non-competitive levels and to deprive NEPCO of the benefits of free and open competition; (cc) collusive practice means a scheme or arrangement between two or more bidders, with or without the knowledge of NEPCO, designed to establish 2015 Navigant Consulting (Europe) Ltd. Page 7
12 indicative prices at artificial, non-competitive levels or to influence the action of any party in the selection process; and (dd) coercive practice means impairing or harming, or threatening to impair or harm, directly or indirectly, persons or their property to influence their participation in the selection process; (ee) obstructive practice means deliberately destroying, falsifying, altering, or concealing of evidence material to the investigation or making false statements to investigators in order to materially impede a NEPCO investigation into allegations of a corrupt, fraudulent, coercive or collusive practice; and/or threatening, harassing or intimidating any party to prevent it from disclosing its knowledge of matters relevant to the investigation or from pursuing the investigation. ii. iii. will reject a Submission if it determines that the Bidder recommended for award, or any of its personnel, or its agents, or its sub-consultants, subcontractors, service providers, suppliers and/or their employees, has, directly or indirectly, engaged in corrupt, fraudulent, collusive, coercive, or obstructive practices in competing for this project or other projects in Jordan; and will sanction a firm or individual, including declaring them ineligible, either indefinitely or for a stated period of time, to be awarded a contract with the Government of Jordan if it at any time determines that they have, directly or through an agent, engaged, in corrupt, fraudulent, collusive or coercive practices Navigant Consulting (Europe) Ltd. Page 8
13 1.6 Bid Requirements a. Volume Proposal Bidders must demonstrate their capability to supply the volume they are bidding for. Specifically Bidders should provide in their Confirmation Notice: i. Delivery Timing Bidder must specify a delivery window lying within the relevant date range stated in 1.3 above (the Delivery Window). ii. Volume Commitment Bidder shall specify the contract quantity to be delivered in Btu (the Contract Quantity). iii. Shipping Commitment Bidder shall specify the LNG Ship to be used for transporting the LNG. Bidder is permitted to propose a delivered LNG volume up to the maximum volume stated in 1.3 above. Note the Al-Sheikh Sabah LNG Terminal, Aqaba, Jordan can accommodate LNG Carriers sizes up to Q-Flex. iv. LNG Source Bidder shall specify the LNG supply source(s). v. LNG Specifications Bidders must confirm that their LNG supply will conform to the Specifications as set out in the Confirmation Notice. b. Price Proposal Bidders may propose either a fixed price or a price formula (the Price Proposal). NEPCO will analyse the Price Proposals and choose the most advantageous, taking account of the cost of NEPCO's alternative fuels (diesel and fuel oil). If Bidders elect to propose a Price formula, linkage to Brent is preferred but NEPCO will also consider linkage to other indices (e.g. Henry Hub, JKM or NBP). Where a Price formula is proposed, Bidders are encouraged to provide a risk management approach to help NEPCO to manage Price risk against its alternative fuels Navigant Consulting (Europe) Ltd. Page 9
14 The Price Proposal should be presented net of all custom duties or fees, transfer taxes, stamp duties and general and special sales taxes that are applicable within Jordan. The liability for payment of taxes will be as set out in the MSA Navigant Consulting (Europe) Ltd. Page 10
15 Section B: Forms 2015 Navigant Consulting (Europe) Ltd. Page 11
16 1. Bid Letter [Name of Bidder and Address] [Date] H. E. Abdul Fattah Aldaradkah, General Manager of the National Electric Power Company National Electric Power Company Jabel Amman 7th Circle, Zahran Street Amman, Jordan Your Excellency, Bid to supply Liquefied Natural Gas We, the undersigned, declare that: (a) we have executed a Master Sale and Purchase Agreement for LNG with NEPCO; (b) we have examined the Bidding Documents, including any addenda, and have no reservations; (c) we hereby offer to supply LNG in conformity with the Bidding Documents in accordance with the Confirmation Notice provided as part of our Bid; (d) our Bid is valid for a period of seventy-seven (77) hours from the Bid Submission Deadline and it shall remain binding upon us and may be accepted at any time before the expiration of the Bid Validity, in accordance with the Bidding Documents; (e) we are not participating, as a Bidder or as a subcontractor, in more than one Bid; and (f) we understand and acknowledge that you are not bound to accept any Bid that you may receive. We hereby confirm that the information provided as part of our Bid is complete and accurate and all necessary Board and other approvals have been obtained prior to the submission of our Bid. Yours faithfully, Signed Name Duly authorized to sign the Bid for and on behalf of [name of Bidder] Dated 2015 Navigant Consulting (Europe) Ltd. Page 12
17 2015 Navigant Consulting (Europe) Ltd. Page 13
18 2. Confirmation Notice Bidders are requested to submit a Confirmation Notice in the form set out in Annex A of the MSA signed by the Bidder and received by NEPCO Navigant Consulting (Europe) Ltd. Page 14
19 3. Form of Performance Guarantee [Date] National Electric Power Company Jabel Amman 7th Circle, Zahran Street Amman, Jordan At the request of Bank (The Foreign Bank) and on behalf of M/S. (The contractor Name and Address), we (The Local Bank) issue in your favor our irrevocable and unconditional performance guarantee No. in the amount of ( ) in this connection we (local bank) hereby consider ourselves responsible for the unconditional payment to you or your authorized representatives of the above sum on your first written demand in whole or in part not withstanding any objections on the part of the above named contractor and without any need for notarial warning or judicial proceedings. This guarantee remains valid from the date of issue till its expiry date on unless it s extended or renewed upon the employer s request. This Guarantee shall be governed by Jordanian law. Yours faithfully, Signed Name Duly authorised for and on behalf of [name of bank] Date 2015 Navigant Consulting (Europe) Ltd. Page 15
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